MIL OSI – Source: European Investment Bank –
Headline: EIB provides EUR 50 million to Gorenje to develop a new generation of domestic appliances
The European Investment Bank (EIB) is lending EUR 50 million to Gorenje Gospodinjski aparati d.d., one of the leading European traditional manufacturer of household electrical appliances. The EIB loan will have a maturity of up to 7 years and will finance the company’s 4-year research, development and innovation expenditure programme aimed at strengthening its innovative capacity by developing new domestic appliances and upgrading its existing product range.
This is the first transaction in Slovenia supported by “InnovFin – EU Finance for Innovators’ InnovFin Large Projects”, with the financial backing of the European Union under Horizon 2020 Financial Instruments.
EIB Vice-President László Baranyay, responsible for the Bank’s operations in Central European countries, commented: “The EIB loan will contribute to the much-needed strengthening of the competitiveness of the European economy by supporting Gorenje’s RDI activities and manufacturing of innovative and environmentally friendly electrical appliances in various EU Member States”.
Franjo Bobinac, President and CEO of the Gorenje Group, stated: “Our Strategic Plan 2016-2020 is summed up by the slogan G4: Gorenje Group Grows Global. Its driving force is the development of premium and innovative products and premium brands as these are expected to double and increase to 30 percent of the Group’s sales by 2020. We see the EIB loan as an expression of confidence and support for achieving our ambitious strategic goals and further developing the Gorenje Group”.
Carlos Moedas, European Commissioner for Research, Science and Innovation, said: “This InnovFin loan will help Gorenje develop its products produced from fewer resources, which consume less electricity and water, and can be better recycled at the end of their use. It is a great example of how Horizon 2020 stimulates European competitiveness and growth by supporting traditional industries and investing in research.”
The EIB funds will support the development of new and better performing white goods that consume less electrical energy, use a greater share of recycled materials, have improved end-of-life recyclability, need fewer resources for their production and use less water during their operation. This will result in positive environmental impacts in line with EIB policy in the area of climate action. The RDI activities will be carried out mainly at the Research and Development Centre in Gorenje’s headquarters in Velenje, Slovenia and also in other R&D locations of the company in the Netherlands, Sweden and the Czech Republic.
Gorenje Group is one of the leading European home appliance manufacturers with a history spanning more than 65 years. Having our own production facilities in Slovenia, Serbia and the Czech Republic our focus lies on the core activity products and services for home: major and small domestic appliances, products for heating, ventilation and air-conditioning and kitchen furniture. Our portfolio investments include ecology-related services, toolmaking, engineering, catering and trade. Gorenje Group has over 10 600 employees worldwide. We have been expanding our international sales network for half a century and generate 95 percent of revenue from the core activity outside Slovenia. In 2015 our revenue amounted to EUR 1.225bn, the majority being generated in Germany, Russia, the Netherlands, Scandinavia, Central and Southeast Europe, the USA and Australia. Technologically perfected, superiorly designed and energy-efficient home appliances under global brands Gorenje and Asko and six additional regional brands elevate the quality of life of users in 90 countries worldwide. We aim to become the most design-driven innovator of home appliances in the world.
InnovFin financial products
Under Horizon 2020, the new EU research programme for 2014-20, the European Commission and the European Investment Bank Group (EIB and EIF) have launched a new generation of financial instruments and advisory services to help innovative firms access finance more easily. Over the next seven years, “InnovFin – EU Finance for Innovators” will offer a range of tailored products which will make available more than EUR 24bn of financing support for research and innovation (R&I) by small, medium-sized and large companies and the promoters of research infrastructures. This finance is expected to support up to EUR 48bn of final R&I investments.
Backed by funds set aside under Horizon 2020 and by the EIB Group, InnovFin financial products support R&I activities, which by their nature are riskier and harder to assess than traditional investments, and therefore often face difficulties in accessing finance. All are demand-driven instruments, with no prior allocations between sectors, countries or regions. Firms and other entities located in EU Member States and Horizon 2020 Associated Countries are eligible final beneficiaries. These debt instruments will be complemented in the near future by a suite of equity instruments managed by the EIF.
InnovFin Large Projects aims to improve access to risk finance with loans and guarantees from EUR 25m to EUR 300m delivered by the EIB for R&I projects promoted by larger companies (over 3 000 employees), universities and public research organizations, R&I infrastructures, public-private partnerships and special purpose vehicles or projects